Department of Trade and Industry (DTI) Secretary Alfredo E. Pascual said Friday, Oct. 6 that they have set four strategic actions to support businesses, trade partners, and micro, small, and medium enterprises (MSMEs) in the Philippines, including upgrading and upskilling, fostering industries, promoting regional development, and reconfiguring export sectors into industry clusters.
Amidst increasing competition from neighboring countries in domestic and export markets, Pascual emphasized that the DTI has initiated a strategy centered on science, technology, and innovation (STI) to prepare the Philippines for a better future.
“To survive and thrive, business enterprises in our country need to embrace innovation and pursue digitalization. Doing so requires leveling up our human capital, technology capability, infrastructure, and legal and regulatory environment,” he said during the 2023 Philippine Association of Realty Consultants and Specialists, Inc. (PARCS) Summit on Friday.
The first strategy is to upgrade, upskill, and upsize MSMEs by collaborating with partner agencies, tech companies, and international organizations to promote digitalization and transformation programs for MSMEs.
Pascual cited that the DTI has launched the Philippine E-commerce Platform, allowing small businesses to operate online and receive digital payments.
“This online space will bring together various enterprises in a virtual shopping mall where consumers can find products and services of different categories to satisfy their needs,” he added.
The second strategy is to foster industries that will benefit the economy by focusing on strengthening local preference in government procurement and developing mechanisms for supporting domestic production capacity through government purchase orders.
“We are entering an era where the real power lies not solely in our factories but more so in our creative minds and ability to innovate. It's not merely about assembling products; it's about creating ideas, solutions, and transformative technologies,” Pascual said.
Part of this effort is the country's National AI Strategy Roadmap, unveiled in 2021, aiming to catalyze competitiveness by ramping up AI research and development investments, fostering multi-sector collaborations, and attracting global R&D funding.
The government and private sector are collaborating to set up the Center for AI Research (CAIR), inspired by renowned centers like Germany's Fraunhofer and Singapore's A*STAR. CAIR will be a melting pot for data scientists and a consultancy hub for AI technologies, aiming to reinvigorate sectors across the board.
The Philippines is also setting up an Industry 4.0 Pilot Factory, an application-based innovation and technology platform for industry, academia, and government.
Pascual underscored that these initiatives will enable various industries to leap-frog competitors and put the Philippines on the world map as an STI hub.
As its third priority, DTI plans to broaden its One Town, One Product (OTOP) Program to support regions specializing in competitive industries, addressing regional growth disparities in partnership with the National Academy of Science and Technology (NAST) and the Philippine American Academy of Science and Engineering (PAASE).
Similarly, the DTI will collaborate with CHED and DOST to strengthen state universities as knowledge hubs, promoting the value-adding processing of agri and aqua products.
The DTI is also working on a Three-Year Food Logistics Action Agenda to shorten the supply chain of agricultural products.
As its fourth priority, the DTI will reconfigure Philippine export sectors into three industry clusters including Industrial, Manufacturing, and Transport (IMT), Technology, Media, and Telecommunication (TMT), and Health and Life Sciences (HLS) to boost growth.
The Philippines is attracting foreign investors and suppliers in the IMT cluster, including aerospace, automotive, and semiconductors industries, as well as promoting green metal processing for EV battery manufacturing and renewable energy initiatives.
Under the TMT cluster, the DTI and the Board of Investments prioritize hyperscalers and data centers as growth engines, with developments like the PLDT Jupiter Cable System and Creative Industries Law promoting growth.
Meanwhile, the HLS cluster plays a strategic security role, with international pharmaceutical companies encouraged to outsource.
Pascual said that the strategy aims to enhance the quality of life for all Filipinos by fostering economic growth, fostering globally competitive industries that can generate more stable and high-paying jobs, and promoting inclusive development in collaboration with private sector businesses, civil society organizations, academic institutions, and government agencies.
"We must be multi-dimensional in our approach by embracing technology and sustainability, by promoting collaborative partnerships, and by fostering a culture of innovation and agility. These are pathways to success and the hallmarks of a resilient, sustainable, and equitable future," Pascual concluded. (Ma. Joselie C. Garcia)